Freddie Mac Publishes Selling Guide Bulletin

Freddie Mac recently issued Guide Bulletin 2020-37 which, among other things, updated guidance for the Market Condition Credit Fee in Price and extended the effective dates for certain flexibilities related to COVID-19.

Bulletin 2020-37 adds two exclusions to the list of mortgages for which a Market Condition Credit Fee in Price will not be charged: (i) mortgages with an original note amount of less than or equal to $125,000, or (ii) certain construction conversion mortgages.

In addition, Bulletin 2020-37 extended the effective dates for various temporary flexibilities through October 31, 2020, including those that relate to: (i) the 10-day pre-closing employment income verification; (ii) permissible appraisal requirements; (iii) condominium project reviews; (iv) acceptable uses of power of attorney; (v) purchases of mortgages in forbearance; and (vi) postfunding quality control requirements.